Impact of Innovation and Technology on Economic Growth and Operations of Kingfisher Plc

This report discusses the impact of innovation and technology on the economic growth and operations of Kingfisher Plc. It explores different types of innovation and technology, their contribution to economic growth, and their effects on sales and profits. The report also evaluates the importance of corporate social responsibility for the organization and applies Archie Carroll's model to analyze its CSR activities.

Report

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Demonstration of understanding different types of innovation and technology and the way
in which they have impacted the economic process of the country............................................1
2. Practical illustration of the way in which technology and innovation have impacted the
operations, sales and profit of the company................................................................................2
TASK 2............................................................................................................................................4
1. Evaluation of the importance of corporate social responsibility for the organisation.............4
2. Application of Archie Carroll’s model for the organisation....................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment could be defined as the surrounding of a business which is
required to be focused by the companies as it can help to determine the external as well as
internal forces which may leave negative impacts upon functionality of company. By conducting
an analysis of it, organisations can find the issues that are leaving negative impacts upon
functionality of business (Civelek and et. al., 2016). The enterprise which is selected for this
report is Kingfisher Plc which is a multinational retail entity and its headquarter is on London,
United Kingdom. It was founded in year 1982 and since then it is operating its business
successfully all around the world. This assignment will be focused with various aspects which
includes innovation and technology, the way in which they are contributing in economic growth,
comparison of sales and profits etc. Additionally, corporate governance, corporate social
responsibility, their importance along with application of explanation of Archie Carroll’s
Pyramid of CSR are also covered in this assignment.
TASK 1
1. Demonstration of understanding different types of innovation and technology and the way in
which they have impacted the economic process of the country
Innovation: It could be defined as the process of formulating a new idea and implement
the same for carrying out activities in more effective manner. In other words, it could be
described as the implementation and development of a new idea which is focused with
improvement of effectiveness and competitive advantage. It is required to be focused by all the
businesses like Kingfisher Plc as it can help to carry out operations easily and meet the
expectations of customers.
Technology: It could be described as the application of specific knowledge for practical
purposes so that the activities that are performed by the companies are executed in less time. It is
a type of scientific knowledge which is focused with providing ease in human life. If it will be
focused by the businesses, then it can help them to meet expectations of customers. For
Kingfisher it is essential to be focused with the use of technology as it can facilitate the executed
of operations effectively (Gaganis, Pasiouras and Voulgari, 2019).
The way in which innovation and technology contribute in the economic growth: If
business entities will be focused with use of innovation and technology then it may contribute in
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the economic growth of the country. It leads to high level of productivity and generate higher
output which can help the countries to generate increased revenues. When productivity of the
country will be increased then more goods and services will be produced that will facilitate the
growth of economy. The digital technology sector of UK is accelerating the faster growth of
economic growth of the country. Between the year 2016 to 2017 the growth of the companies
providing digital technology was 4.5% and it resulted in increment of GDP by 1.7%. There are
various types of technologies that are used by the companies that are operating in UK. These are
IT budget and roadmap, cloud software. Artificial intelligence etc. Use of all of them is
facilitating the economic growth of the country (Gavurova and et. al., 2017).
The way in which business organisations use new technologies in operations: For all the
business organisations it is very important to make sure that they are using latest technologies as
it can help to carry out operational activities in systematic manner. It can help to meet the long as
well as short term business goals successfully. There are various types of new technologies that
are used by organisation in operations. One of them is artificial intelligence which is used by
enterprises to perform business in effective way and easy manner. With the help of it, all the
operations are carried out by machines as well as robots which helps to reduce the possibility of
mistakes in business execution. Kingfisher Plc is one of the famous multinational company
which is operating business all around the world and it also used new technologies in the
operations. One of them is cloud based software which helps to keep all the information secure.
2. Practical illustration of the way in which technology and innovation have impacted the
operations, sales and profit of the company
Overview of the company: Kingfisher Plc is an international organisation which is
operating its business in various countries. Its headquarter is in London, United Kingdom and
some of the main subsidiaries of it are Screwfix, Castorama, B & Q, Koctas and Brico Depot. All
the operational activities of it are carried out by it systematically in all the locations where it is
offering its products and services to the customers (Głodowska, 2017).
Description of new technologies and the way in which they are being used by the
entity: There are various types of new technologies that are introduced in the market and
adopted by Kingfisher Plc. The description of all of them is as follows:
 SAP ERP ECC 6.0 – material management: It was purchased by Kingfisher Plc in year
2016 for the purpose of managing the material. It is facilitating the enterprise to keep
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detailed information of material and manage it in systematic manner so that expectations
of customers could be met. It is also helping the employees to get aware of the quantity of
raw material placed in warehouses and stores so that order for future could be placed.
 Oracle ATG web commerce: Kingfisher Plc purchased this software in year 2013 for
ecommerce so that the future assumption related to it could be made. With the help of it,
the enterprise is building and deploying dynamic and personalised applications for the
web. By using it communication channels could be established properly which helps to
interact with the customers properly.
 SAP Business warehouse: It was purchased by the organisation in year 2013 so that the
enterprise can integrate, transform and consolidate the business related details. It provides
functions and tools to the entities so that the can formulated effective policies to attain the
objectives of the company (Hillary, 2017).
Comparison of sales and profits of the company before and after introduction of
new technologies: Kingfisher Plc purchased different types of software in 2013 and 2016. It
made changes in revenues and profits of the enterprise so that it can meet all its long term
business goals and objectives. In year 2012 the profits of the organisation were around 639 and
after introduction of two of the new software that are Oracle ATG web commerce and SAP
Business warehouse the profits of the organisation were increased (Technologies used by
Kingfisher Plc, 2020). The increased profits were 710. It shows that both the software has
facilitated the enterprise to enhance its profitability. On the other hand, sales of the enterprise for
2012 was 10831 which was increased in 2014 up to 11125. It is also demonstrating that the use
of new technology is beneficial for the organisation to enhance the profits and sales for the
enterprise. In 2016 the organisation introduced SAP ERP ECC 6.0 – material management
which was mainly used for the purpose of managing the material. Before introduction of it the
profits and sales of the entity were around 412 and 10441 for 2015 and after introduction of the
new technology these two figures were increased up to 485 and 11655 respectively. It is also
showing that the profitability of the organisation is also improved after introducing the new
technology. If the organisation would not have used it properly then it would have been very
difficult to improve the sales and profits for the years. By analysing the use of technologies it has
been analysed that before application of them the profits and sales of the enterprise was low but
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when these were applied the profitability of the organisation was increased (Johnson and Turner,
2015).
On the basis of above discussion, it has been analysed that technology and innovation are
two different types of elements that should be focused by the entities as it can help to improve
the profitability of business. Apart from this, it is also very important for the organisations to use
the latest technology properly so that their benefits could be attained. There are various types of
new technologies that are used by Kingfisher Plc which is facilitating it to improve its sales and
profits. All the technologies that are used by it resulted positively because after introduction of
them profits of the enterprise are enhanced. Apart from this, the technologies also facilitated the
entity to carry out all the operational activities properly and meet the long term business goals
and objectives.
TASK 2
1. Evaluation of the importance of corporate social responsibility for the organisation
Corporate governance: It could be defined as the rules and regulations of government
which are required to be focused by all the businesses to carry out all the operations properly. If
the policies that are imposed by the companies, then it may result in legal interferences in the
operational activities. For the businesses it is essential to make sure that they pay attention
towards the governmental policies and laws. Kingfisher Plc is a large organisation and it is also
following all the regulations of the government and with the help of it, it is able to carry out all
the operational activities successfully.
Corporate social responsibility: It is a management concept which is focused by the
companies to pay attention towards environmental and social concerns so that the operational
activities could be carried out successfully. Apart from this, it can help the businesses to portray
a positive image of them in the market because it facilitates to operate business in ethical
manner. Kingfisher Plc is also focused with execution of all its operational activities by paying
attention towards corporate social responsibility. It is facilitating the organisation to ignore the
negative implications of it on the environment (Kozubikova, Homolka and Kristalas, 2017).
History of corporate governance in UK: There are various types of governmental
policies that are imposed by the legal authorities for the companies that are operating in UK. It is
essential for all the businesses to comply with them to ignore legal interference in business.
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Government of UK has formulated different codes related to various factors. Some of them are
relations with shareholders, auditing, accounting, remuneration and other key factors. All the
codes related to them were published by financial reporting council. Firstly, these codes were
published in year 2010 and since then, it is very important for businesses to comply with them.
Importance of CSR for organisations: Corporate social responsibility is very important
for all the businesses. Some of the main significances of it are as follows:
 With the help of corporate social responsibility activities Kingfisher is able to establish
good relations with stakeholders as well as the customers.
 For Kingfisher Plc it is very important to be focused with CSR as it can help to increase
branding of the entity.
 CSR is essential for enterprises like Kingfisher as it can help to reduce the negative
impact of business activities (Lee, 2017).
2. Application of Archie Carroll’s model for the organisation
CSR is the main activity for all organization that uses to engaging in decision making,
action, policies and practices for the purpose of increasing brand image and maintaining higher
profitability. Kingfisher Plc is British multinational retailing company operating their business
by providing range of products and services at retail prices which helps to improve the brand
image and developing a business. The organization is contributing in CSR activities which is
important to build the customer trust and managing all activities in effective manner. Archie
Carroll’s Pyramid of CSR uses by selected organization that are as explained:
Economic responsibilities: This means organization has responsibility to make profits
and to survive in society for long term. Kingfisher Plc company is understand the demand of
their customers, providing products and maintaining eco- friendly packaging of their products
that are cost saving, helps to increase the sales and maintain profitability. Moreover, this focuses
on activities how to make profits by influencing number of customers and offering quality of
products that helps to complete the economic responsibilities (Saleem, 2015).
Legal responsibilities: This responsibility states organization should be follow laws and
other regulations which are related to business and employees that can help to operate the
business and manage the all activities. As focusing on CSR activities Kingfisher Plc is following
employment laws, Health & Safety laws and other regulations which are related to business,
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ensure customers that organization is providing better quality of products and services which
helps to retain employees and customers for long term.
Ethical responsibilities: The strategy of Carroll model is related to responsibility to act
morally and ethically that encourages employees to work more and manage the all activities. The
management of Kingfisher Plc is contributing in ethical responsibility by maintaining good
behaviour, moral, and values which can help to develop a business and increase the performance
in competitive environment. The organization also maintain good relations with its suppliers and
employees which helps to operate the business and managing the all activities effectively (You
and et. al., 2019).
Philanthropic responsibilities: This responsibility is related to give back to society in
different forms that can increase their satisfaction level and moral values in changing
environment. The customers become brand loyal of organization is following the philanthropic
responsibility. Kingfisher Plc is contributing in charitable donation, trust, running NGO and
others which increases insights of customers and making them loyal customers which can help to
operate the business and maintain higher performance in competitive environment. This is the
best way of developing the business activities and performance as it motivates employees and
customers that organization is establishing for public welfare.
By using Archie Carroll model to CSR, Kingfisher Plc is operating their business
effectively as it manages all functions by contributing in economic, legal, philanthropic, and
ethical responsibilities which helps to develop their business and maintain the higher profitability
in competitive market. This ensures customers that organization is working for public welfare as
it provides better quality of products and services at retail cost.
CONCLUSION
From the above project report it has been concluded that business environment is an
essential aspect which should be focused by the businesses to analyse the actual position of
business. Technology and innovation are also required to be take in to consideration while
planning to carry out the operations in systematic manner. If the enterprises will not be focused
with them then it may leave negative impact upon functionality of business. Apart from this, it is
also very important for businesses to be focused with corporate governance and corporate social
responsibility. With the help of both of them, business can execute the operational activities
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legally and ethically. In order to determine the main areas to be focused for CSR Archie Carroll
model could be used.
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REFERENCES
Books and Journals:
Civelek, M. and et. al., 2016. A model of measurement of the quality of business environment in
SME segment. Journal of International Studies.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling.78. pp.275-292.
Gavurova, B. and et. al., 2017. Predictive potential and risks of selected bankruptcy prediction
models in the Slovak business environment. Journal of Business Economics and
Management.18(6). pp.1156-1173.
Głodowska, A., 2017. Business Environment and Economic Growth in the European Union
Countries: What Can Be Explained for the Convergence? Entrepreneurial Business and
Economics Review.5(4). pp.189-204.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Johnson, D. and Turner, C., 2015. European business. Routledge.
Kozubikova, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of
Competitiveness.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
You, K. and et. al., 2019. Bridging technology divide to improve business environment: Insights
from African nations. Journal of Business Research.97. pp.268-280.
Online
Technologies used by Kingfisher Plc. 2020. [Online]. Available through:
< https://www.appsruntheworld.com/customers-database/customers/view/kingfisher-
plc-united-kingdom#:~:text=We%20have%20been%20analyzing
%20Kingfisher,emerging%20technologies%20such%20as%20AI%2C >
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